market based instruments

Question 1

what are Emission Taxes

Answer 1

These are taxes directly applied to the pollutants.
Example: A tax on sulfur dioxide (SO2) emissions from factories.

Question 2

what are product charges

Answer 2

These are taxes applied to the products that cause pollution.
Example: Taxes on fuels or pesticides that lead to pollution.

Question 3

What is a pigovian fee

Answer 3

A Pigovian Fee is a fee paid by the
polluter per unit of pollution equal to the
aggregate marginal damage caused by the
pollution when evaluated at the efficient level of
pollution. The fee is generally paid to the
government.

Question 4

Effluent Charges meaning

Answer 4

These are taxes imposed on each unit of pollution emitted by sources like factories.